Elizabeth Holmes returns to court in bid to avoid prison

Mar 17, 2023, 1:47 PM
Former Theranos CEO Elizabeth Holmes leaves federal court in San Jose, Calif., Friday, March 17, 20...
Former Theranos CEO Elizabeth Holmes leaves federal court in San Jose, Calif., Friday, March 17, 2023. (AP Photo/Jeff Chiu)
Credit: ASSOCIATED PRESS
(AP Photo/Jeff Chiu)

SAN JOSE, Calif. (AP) — Disgraced Theranos CEO Elizabeth Holmes on Friday made what might be her final court appearance before beginning a 11-year prison sentence, unless a judge grants her request to remain free while her lawyers appeal her conviction for masterminding a blood-testing hoax.

The 90-minute hearing came four months after Holmes’ last court hearing. That was when U.S. District Judge Edward Davila sentenced her for duping investors in Theranos, a startup she founded 20 years ago and rode to fleeting fame and fortune on her promises of a revolutionary blood-testing technology.

Before the hearing started, a man in the audience in the San Jose, California, courtroom tried to approach the table where Holmes was sitting while carrying a document in his hand. He was quickly intercepted by security officers who forcibly removed him. Holmes didn’t appear flustered by the disruption.

The proceedings ended without a determination whether Holmes, 39, will be able to stay out of prison while her appeal unfolds or have surrender to authorities on April 27, as currently scheduled. Davila said he hopes to issue his ruling in early April.

The judge earlier this month used a last-minute legal maneuver to gain more time.

Holmes came to her St. Patrick’s Day hearing wearing a black blazer and blue skirt. She recently gave birth to her second child, according to court documents that didn’t disclose the gender or birth date.

One of her lawyers, Amy Saharia, argued that Holmes should be allowed to remain free because of various missteps in the presentation and omission of evidence during her four-month trial that make it likely an appeals court will overturn her conviction on four counts of fraud and conspiracy.

“We think the record is teeming with issues,” Saharia asserted. She specifically cited Davila’s refusal to allow the jury to see a sworn deposition that Balwani gave during a Securities and Exchange Commission investigation into Theranos’ downfall that Holmes’ defense team believes would have helped exonerate her.

Federal prosecutor Kelly Volkar countered there is “no likelihood for reversal” of Holmes’ conviction and asserted that the trial documented seven different categories of deception that she engaged in while running Theranos. Most of the deceit centered on a device dubbed “Edison” that Holmes had boasted would be able to scan for hundreds of diseases and other health problems with just a few drops of blood taken with a finger prick.

But the Edison produced such wildly unreliable results that Theranos began relying on third-party testing equipment already widely used on the market — a switch that Holmes concealed in an effort to keep the company afloat.

“That was shocking to investors,” Volkar reminded Davila.

The two opposing sides also sparred over how much restitution Holmes should pay defrauded investors whose trust briefly boosted her wealth to $4.5 billion based on Theranos’ peak value before its collapse.

Federal prosecutor Robert Leach argued her conviction for engineering a conspiracy justified restitution of nearly $900 million to repay Theranos investors swept up in her lies. “Just to apply common sense, the money these investors lost is the money they put in,” Leach said.

But Hollmes’ lawyer Patrick Looby countered that prosecutors were way off base by pursuing an “all or nothing” restitution amount. He noted that the jury in her trial couldn’t reach a verdict on three counts of investor fraud, prompting the prosecutor to dismiss those charges. At most, Looby contended, Holmes’ restitution penalty should be limited to the handful of investors who testified during her trial.

National News

FILE - This March 20, 2020, photo provided by the Missouri Department of Corrections shows Gary Mue...
Associated Press

Missouri man dubbed ‘Package Killer’ admits to 2 murders

ST. LOUIS (AP) — A Missouri man dubbed the “Package Killer” for his method of disposing bodies received two life sentences Tuesday after admitting to killing two women in the St. Louis area more than 30 years ago. Gary Muehlberg, 74, has now pleaded guilty to killing three women and faces a hearing next week […]
14 hours ago
FILE - West Virginia Gov. Jim Justice delivers his annual State of the State address in the House C...
Associated Press

Puzzling highway death part of West Virginia police probe

CHARLESTON, W.Va. (AP) — A man who died after struggling with law enforcement on a West Virginia interstate was hit by a trooper’s Taser, a police official said Tuesday in disclosing new details of one of a series of incidents that prompted Gov. Jim Justice to order a sweeping investigation of State Police. State Police […]
14 hours ago
Associated Press

Ukrainian soldiers near finish of Patriot missile training

FORT SILL, Okla. (AP) — Several large, 12-wheeled military vehicles carrying mobile missile launchers rumbled across the southwest Oklahoma prairie on Tuesday as part of a training exercise at the Fort Sill Army Post. Spilling out of the sand-colored vehicles and quickly setting up the launchers were some of the 65 Ukrainian soldiers who have […]
14 hours ago
Associated Press

Lawyer: 29-year-old who posed as teen student was lonely

NEW BRUNSWICK, N.J. (AP) — A 29-year-old woman accused of using false documents to enroll as a New Jersey high school student and attend some classes over a four-day period did so because she was lonely and longed to return to her days with friends in school, her lawyer said. The woman pleaded not guilty […]
14 hours ago
Associated Press

Editorial Roundup: United States

Excerpts from recent editorials in the United States and abroad: March 15 The Washington Post on voter fraud: A 59-year-old man was arrested last week for allegedly double voting in the 2020 presidential election. Florida authorities brought the felony charge because of information submitted by Virginia to a national database called ERIC, which is short […]
14 hours ago
Associated Press

Georgia senators send gender care restrictions to governor

ATLANTA (AP) — A bill banning most gender-affirming surgeries and hormone replacement therapies in Georgia for transgender people under 18 is headed to Gov. Brian Kemp’s desk after senators gave it final passage on Tuesday. Senators voted 31-21 along party lines with Republicans pushing through Senate Bill 140, despite impassioned pleas from Democrats and LGBTQ […]
14 hours ago

Sponsored Articles

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Elizabeth Holmes returns to court in bid to avoid prison